Chinese Carmakers Dominate Paris Motor Show

At this week’s Paris Motor Show, there are no signs the influx of low-cost Chinese vehicles will slow despite European Union efforts.

· Chinese brands take centre stage: More than 20 Chinese automakers showcased vehicles at the Paris Motor Show, marking a major shift from their limited presence in 2006.

· Rapid European expansion: Chinese companies are targeting Europe to offset weak domestic demand and limited access to the US market.

· Local manufacturing plans: Xpeng aims to sell around 500,000 vehicles annually in Europe by 2030, while BYD plans production in Hungary and is considering additional factories.

· European partnerships grow: Leapmotor is manufacturing vehicles in Spain with Stellantis, while Geely, SAIC and Chery are pursuing production and partnership opportunities across Europe.

· Chinese cars attract buyers: Advanced features, competitive prices and technology are drawing European consumers towards Chinese brands.

· Sales surge: BYD’s European sales have more than doubled this year, while Chery and Leapmotor have recorded even faster growth. Chinese brands account for approximately one in every 10 cars sold in Europe.

· EU considers trade restrictions: A proposed agreement with Beijing could halve Chinese hybrid-car exports to the EU over the next four years. European policymakers are also considering measures to favour local manufacturers.

· Protectionism may have limited impact: Analysts believe Chinese companies could respond by manufacturing more vehicles within Europe, potentially reducing the effectiveness of import restrictions.

· European industry faces a dilemma: Cooperation with Chinese automakers could help keep underused factories operational, but may also strengthen future competitors.

[ABS News Service/15.10.2026]

With the spotlight on car giants like General Motors and Toyota, visitors to the Paris Motor Show in 2006 might have missed two newcomers: Landwind and Great Wall Motor from China.

Two decades later, no one could possibly overlook Chinese carmakers at the biennial gathering. China’s ambition is palpable throughout the sprawling Paris Expo Porte de Versailles this week.

More than 20 Chinese brands are showing off their designs and seeking to strengthen their European ties. One company, GAC, publicized a partnership with Chelsea F.C., the Premier League soccer club. Another, BYD, promoted its sponsorship deal with the hometown team, Paris St.-Germain. Geely introduced a hybrid electric-gasoline sport utility vehicle with a “born for Europe” slogan.

Despite Europe’s efforts to curb an influx of China’s low-cost cars, Chinese companies show no signs of slowing down. Shut out of the United States and facing weak demand at home, they are aiming to build on their rapid gains in Europe and expand local production to stay ahead of tougher trade restrictions.

Xpeng is one example. The Chinese company is taking an “in-Europe, for-Europe” approach, He Xiaopeng, a co-founder, said in a speech on Tuesday. The company plans to focus on “localizing” production in Europe as it moves toward a target of selling about 500,000 vehicles a year in the region by 2030. Xpeng is open to sharing its technology with European companies, he said.

“We want to have deeper collaboration in Europe,” he said.

Anne-Laure Paulic is one potential customer. She and her family might replace their BMW — and buy their first Chinese car. Ms. Paulic, a consultant, and her husband took the train to Paris from their home in Brittany in northwest France to check out the newest models.

“It’s a nice surprise,” she said as she stepped out of a gleaming Xpeng G9L, which is produced in Austria and has an array of features increasingly common in Chinese cars: a 21-inch, ceiling-mounted screen; climate-controlled seats with massage; and a refrigerator. “I love the gadgets.”

Spain has emerged as a prime destination for Chinese carmakers seeking partnerships with European and American rivals. Another electric car on display, Leapmotor’s B10, is produced at the Chinese company’s first European manufacturing facility, in Zaragoza, and developed with Stellantis.

Geely is working with Ford Motor at the U.S. company’s plant in Valencia, SAIC plans to manufacture cars in Galicia and Chery has joined with a Spanish brand to produce cars in Barcelona.

Other countries are attracting Chinese companies, too. BYD, China’s dominant maker of electric vehicles, plans to produce cars in Hungary and is considering more factories, possibly in France. The trend is set to continue as struggling European companies turn to Chinese competitors to fill underused plants.

Chinese companies are aiming to produce more cars in Europe as the region’s policymakers try to curtail their exports. European Union officials said a deal with Beijing on Friday could halve the number of Chinese hybrid cars sent to the bloc in the next four years, helping to alleviate pressure on the European car industry. Officials are also discussing proposed rules that would prioritize European companies when public money is at stake.

France’s president, Emmanuel Macron, who visited the event on Monday, has said Europe’s industries face a “life or death” moment.

Still, efforts to stem the flow could be just “a temporary respite, as in the medium term we see Chinese manufacturers near-shoring more to the E.U.,” said Matthias Schmidt, an analyst in Germany. Restricting supplies could also allow Chinese companies to raise prices, benefiting those manufacturers in Europe over time.

China’s rise is a new chapter for the Paris show, first held at the Jardin des Tuileries in 1898. Although companies such as Renault are keen to demonstrate their prowess, one prominent European company — BMW — opted not to attend.

Chinese companies “have a big foot in the door,” said Serge Gachot, the director of the event and a former executive at Toyota and other companies. “They are very disruptive and fast moving.”

BYD’s sales in Europe have more than doubled this year, while sales of Chery and Leapmotor have grown at an even faster clip. After selling 700,000 cars back home, Xiaomi sees Germany as the foundation of its European expansion plans.

Chinese cars already account for about one in every 10 cars sold in Europe. And by teaming up with Chinese companies to keep their factories running, European manufacturers could end up helping their rivals. Yet they may have little choice but to cooperate and learn from their Chinese counterparts, said Ferdinand Dudenhöffer, an analyst and former industry executive.

“You can’t stand alone,” he said.

One of Zeekr’s mottos, “the power of a giant and a European soul,” is emblazoned on the wall of its exhibit. Sitting in the back of one of the Geely brand’s electric cars, its director in France, Rémy Aybaly, said he did not expect trade hurdles to hamper Zeekr’s ambitions.

As for the Chinese companies, “you can see it as a threat, or you can see it as a chance” for Europe, he said.